Technology Set To Change The Way We Bank In 2016

The banking industry is going through a period of substantial change in terms of the technology that it uses to offer the most efficient service possible. Increasingly, banks have no choice but to keep pace with the demands of their often tech-savvy customers, many of whom have a very clear idea about their ideal banking experience.

Sophistication

One of the main changes has been how the usage of faster internet connections plus smartphones with an ever-increasing level of sophistication has led to the expectation that all services – including banking – should be accessible via a mobile phone. And as technology moves at a hectic pace, so traditional paper banking is becoming ever more obsolete.

Accessibility

One of the main benefits of the new technology is that it makes banking far more accessible and certainly more convenient. As mobile technology continues to advance, it seems likely that banks will continue to innovate in terms of integrating phone banking with the facilities offered by a bricks-and-mortar branch.

New services such as Android Pay and Apple Pay are two examples of the strides that the industry is taking. Apple Pay enables customers to pay for goods, services and even transport via a simple iPhone scan, and rumours are circulating that mobile giant Samsung is about to announce a very similar technology. In addition, Barclays launched its online payment system, ‘Pingit’, and it seems likely that these examples will be just the tip of a very large, technologically advanced iceberg. Indeed, as the larger retailers become ever more comfortable with this new way of transferring money, so we can expect to see more and more services like these hit the market. Mobile payment is a trend that is set to escalate over the next few years, and it’s vital that the banks keep up.

Digital Lifestyle

One new company keen to hop on the bandwagon is Starling. Its USP is that it will offer a current account accessible only via smartphone. It plans to utilise the very latest in data and mobile technologies to support the modern ‘digital lifestyle’. The bank will offer its customers the ability to select and download a variety of (third-party) financial services via its app.

Bespoke Service

Starling is planning to cherry-pick the best available components to build a new type of banking system which is due to launch this year. It will offer its customers a private cloud containing their own bespoke selection of services, including current accounts, payments, ledgers, security and cutting-edge apps.

Starling has obtained backing to the tune of £48million from private investor Harold McPike, and is ably supported by a highly experienced board of directors with an impressive set of CVs in both IT and banking. The banking industry is waiting with bated breath to see how this new, innovative and technologically driven banking blueprint will be received.